The United States and Japan will step up their defence cooperation to deal with the threat from nuclear-armed North Korea as tensions in East Asia remain high, officials from the two allies said on Thursday.

But it may become a permanent situation with Vatican officials preparing to pension Cardinal Pell off, a report by The Herald Sun claims.

The report claims Pope Francis is looking to minimise any damage to the Catholic Church’s reputation, regardless of the outcome of the case.

A statement from the Holy See said it learned of the charges "with regret".

"Cardinal Pell, acting in full respect of civil laws, has decided to return to his country to face the charges against him, recognising the importance of his participation to ensure that the process is carried out fairly and to foster the search for truth."